Vinted, a second-hand fashion site, reports its first annual profit

Vinted, Europe’s largest online marketplace for used clothes, has made headlines by posting its first annual profit, signaling a major milestone for the popular Lithuanian start-up. The company reported a net profit of €18mn in 2023, a significant turnaround from the €20mn loss it experienced in the previous year. This success was accompanied by a remarkable 61% increase in sales, reaching €596mn.

The growing trend of buying and selling second-hand fashion has played a key role in Vinted’s rapid growth and profitability. CEO Thomas Plantenga emphasized the potential of the second-hand fashion market, highlighting the company’s position as a leader in sustainable fashion in Europe. Vinted aims to expand its customer base across more countries and improve logistics for delivering goods between consumers.

In preparation for a potential stock market listing, Vinted has been exploring various capital structure options, including a secondary share sale. The company recently secured a €50mn revolving credit facility for future investments and expansion plans, such as potential takeovers.

With a presence in multiple countries across Europe and beyond, Vinted is not just a marketplace but also offers additional services like Vinted Go, a shipping service with its own lockers for convenient delivery and collection of clothes. The company has also obtained licenses for payment services and verification of luxury items to enhance the safety and efficiency of transactions.

As Vinted continues to balance profitability with investment opportunities, Plantenga remains optimistic about the company’s future prospects. With a strong focus on sustainability and innovation, Vinted is poised to further accelerate towards its mission of making second-hand fashion the first choice for consumers.